PROJECT OVERVIEW

The two Zone Resources Inc. properties comprise a total of 541 claims covering 63,041 acres. The three blocks are:

• Lac Edgar & Girard Lake West Properties: 63,041 acres



EXPLORATION OVERVIEW

The properties are located 120 kilometres southwest of the town of Kuujjuaq (formerly Fort Chimo), on the estuary of the Koksoak River, 50 kilometres upstream from Ungava Bay. Kuujjuaq is accessible by barge services, and its airport has daily flights to and from Montreal. The properties are between 280 and 370 kilometres north-northwest from Schefferville, at the end of the rail line from Sept-Iles. The Schefferville railway line is owned and operated by Tshiuetin Rail Transportation and is the only native-owned railway in Canada. It links with the QNS&L line from Wabush to Sept-Iles. Regular freight and passenger trains serve Schefferville.

The 1951 exploration program on the Moore-Ross Mountain property was supplied by boat from Kuujjuaq via the Koksoak River, so it can be assumed that this river is navigable by small boats. For modern exploration programs, it is advisable to use fixed-wing aircraft and helicopters, but the use of the river to bring in fuel for future drill programs should be carefully investigated.

On the Moore-Ross Mountain property, previous work has partially delineated three zones of taconite with local pockets of iron enrichment, all of which have the potential to develop into substantial deposits. These are the Moore-Moore Extension, the Star and the Partington.

On the Lac Edgar property, the McDonald and Ball No. 1 are also partially delineated zones with significant tonnage potential, although the historical data are less complete on this property.

An examination of government airborne magnetic surveys, carried out on wide spacing and thus not revealing much detail, indicates considerable strike lengths of iron formation that have only been partly tested in the past, probably because of poor outcrop. On the Moore-Ross Mountain property there are approximately 24 kilometres of iron formation, on the Bob Lake property there are about 20 kilometres, and on the much larger Lac Edgar and Girard Lake West properties, there are 72 kilometres. This makes a total of 116 kilometres of favourable geology, that needs to be thoroughly tested.